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UMe Credit Card Payoff Calculator

It’s time to tackle your credit card debt by creating a plan to become (drumroll please) debt free! Just picture what else you could do with the money you’re paying to your credit card company. That’s a pretty great visual, right? Let’s make it a reality!

Using our credit card payoff calculator, you can easily identify how long it will take you to pay off your balance and how to adjust your payment habits to get yourself to sweet debt freedom quicker than you can say UMe Emu ten times in a row! Does that sound like a good plan? Then let’s get started.

 

 

How to use the credit card payoff calculator

Before using the credit card payoff calculator, you should gather important information about your card. The information you need includes your:

  • Current balance: This is how much you currently owe on your credit card. Soon, it’ll be $0, but you have to know your starting point. 
  • Interest rate (APR): This is the percentage of your balance that you pay in interest. The interest rate can be a real kicker, so reducing your interest can help you pay off your balance sooner.
  • Current monthly payment: This amount can fluctuate each month, so it would be smart to calculate your average monthly payment.
  • Annual fee: This might not apply to your card, but if you do pay a yearly fee, you should include it. Oh and by the way, you shouldn’t be paying an annual fee for your card! There are too many $0 fee cards available! (Like a UMe card!)

 

Along with information about your credit card, you want to have an idea of your:

  • Payoff goal (in months): This is the number of months you think it’ll take to get your credit card balance paid off. 
  • Additional monthly charges: This is how much you expect to charge to your credit card each month. You might not have an exact number, so have an average amount in mind. Pro tip: It’s better to overestimate the amount.

 

When you input all of this information into the credit card payoff calculator, it will tell you how much you need to pay each month to achieve your payoff goal, along with how long it’ll take you to pay off your debt based on your current monthly payment. 

 

Credit card payoff calculator terms

Understanding the credit card lingo and terms in the payoff calculator will help you better understand your results.

Current balance

The current outstanding balance on your credit card.

Interest rate (APR)

The annual interest rate being charged for your credit card.

Payoff goal (in months)

This is the number of months you want to have completely paid off this credit card balance.

Current monthly payment

The amount you are currently paying per month on this credit card. Be sure to enter the amount you pay, not the minimum payment. This is used to calculate how long it will take you to pay off your balance.

Additional monthly charges

The total new charges you expect to put on this credit card per month. Try to keep this amount to a minimum. 

Annual fee

Your annual fee for this credit card, if any. (Reminder: At UMe, we don’t charge an annual fee for our Credit Card — and it’s a rewards-earning card!)

Major purchase

If you expect a significant purchase beyond your regular charges, enter the amount to be spent here.

Months from now

The number of months before your major purchase will occur.

 

How to Use Credit Card Payoff Calculator Results

Once you get the results from your credit card payoff calculator, you should put them into action as soon as you can. You’ll either find yourself on track to pay off your credit card debt in the expected time frame or based on your current payments, it may take you longer than expected. 

If you’re on track to pay off your credit card debt 

If you’re on track, continue to make your payments as planned until you’ve paid off your credit card balance, then it’s time to celebrate! 

If you’re not on track to pay off your credit card debt

If you’re not on track, you have a few options:

  • Review your budget: Can you afford to pay more each month? Can you reduce your spending or increase your income to make higher payments? Every dollar counts — literally! 
  • Reduce your high interest rate: If you don’t have the flexibility in your budget, your next best option is to transfer your balance to a low interest rate credit card. When you pay less in interest, you can pay off your balance sooner while paying less overall. Talk about saving big time!

 

What’s Next?

You need to know where you stand with your credit card debt. It’s then and only then that you can make the best decisions regarding how to pay it off. Use our credit card payoff calculator any time to help you determine the next best steps for you so you can celebrate your $0 credit card balance sooner than later!

Check out the interest rates on our UMe credit card and how they compare to your current interest rates. Reducing how much you pay in interest can help you save big time money as you pay off your debt. Bonus: There is no fee to transfer your balance to a UMe credit card — and our rates are low and fixed!

 

check our interest rates

 
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